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SWOC DAMA 2008 Showcase at American Modern Insurance

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Title: SWOC DAMA 2008 Showcase at American Modern Insurance


1
SWOC DAMA 2008 Showcase at American Modern
Insurance
  • February 21, 2008

2
Showcase Agenda
  • Background/Business Case
  • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
  • 20 minutes Latha Subramanian
  • Data Model AIIM
  • 20 minutes Duke Ganote
  • Information Management AIIM
  • 20 minutes Dan Daly
  • Q A Duke/Sandy/Latha/Dan
  • 20 minutes

3
American Modern InsuranceCompany Background
  • Founded in 1938 as a consumer finance company
  • Provider of highly focused, specialty insurance
    products
  • Positioned to grow into a multi-billion dollar
    organization
  • Entrepreneurial spirit deep commitment of
    employees
  • Approximately 1200 employees country-wide, with
    1000 employees in eastern Cincinnati area
    (Amelia)

4
American Modern InsuranceCompany Background
  • The organization believes that the strategic
    deployment of technology can help it achieve, and
    sustain, a competitive advantage.
  • As stated in its Operating Principles, Our
    investment in information technology is part of a
    carefully planned strategy to ensure that
    American Modern's company-wide infrastructure is
    among the most advanced in the specialty
    insurance industry.

5
American Modern InsuranceInitiative Background
  • In 2000, American Modern embarked upon long-range
    initiative, coined modernLINK,
  • Business and IT collaboration
  • Business case and funding
  • Three prongs
  • Web-enable insurance transaction processing
  • Replace aging legacy processing systems
  • Develop a Knowledge Management architecture

6
American Modern InsuranceBusiness Case
  • The anticipated returns of this business case
    were
  • 20 annual increases in directly-attributed new
    business
  • 37 of Policy and Partner Administration moved
    from existing internal units directly to point of
    service
  • 25 improvement in current Product Review and
    Management cycle time
  • 21 improvement in Product Filings cycle time
  • 2 reduction in total loss ratio directly
    attributed to modernLINK initiative

7
American Modern InsuranceBusiness Case
  • These returns would yield a significant recurring
    annual benefit through additional premium,
    increased profit, and decreased expenses
  • Almost 50 of these benefits would be attained
    through better knowledge/data management, richer
    data segmentation, and improved data and risk
    selection
  • John Hayden, President and CEO, American Modern
    states
  • We must have accurate data about the risks we
    insure today if we are to ever be successful in
    establishing The Right Rate for Every Risk we
    choose to insure in the future.

8
American Modern InsuranceKnowledge Management
Roadmap
  • Enterprise Data Model
  • Operational Data Store
  • Enterprise Data Warehouse
  • Themed analytic data marts
  • Enterprise reporting portal
  • Metadata management
  • Data Stewardship

9
(No Transcript)
10
American Modern InsuranceKnowledge Management
Results
  • Business users can
  • Make informed decisions
  • Respond quickly to new business initiatives
  • Create new opportunities
  • Business users are
  • Moving from data collectors to data consumers
  • Asking why instead of what

11
American Modern InsuranceKnowledge Management
Results
  • Retention Joe David. In the last four years,
    we have leveraged the corporate reporting tools
    to develop a series of targeted strategies that
    have allowed us to improve retention by nearly
    eight points, which equates to annualized premium
    of nearly 60 million
  • Claims. Integration of 3rd party Claim data -
    Heather Bolyard. This one-month sample of data
    for one material has identified a potential
    indemnity reduction of 70,000.
  • Reserving Gene Stetler. The new Loss Reserving
    data store from the Enterprise Data Warehouse has
    enabled process efficiencies, thus allowing us to
    predict our reserving needs with accuracy.
  • Product Kevin Randall. The implementation of
    American Modern's data warehouse has been a
    significant part of the successful launch of the
    company's right rate for every risk initiative

12
American Modern Insurance2007 Awards and
Recognition
  • In 2007, American Modern received two awards from
    Computerworld
  • Laureate - The laureate status for the Enterprise
    Data Warehouse presented at the Carnegie Mellon
    Auditorium in Washington D.C June 2007
  • BI Award - Best Practices in Business
    Intelligence in the category Creating an Agile
    BI Infrastructure presented in Las Vegas, NV
    September 2007

13
Showcase Agenda
  • Background/Business Case
  • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
  • 20 minutes Latha Subramanian
  • Data Model AIIM
  • 20 minutes Duke Ganote
  • Information Management AIIM
  • 20 minutes Dan Daly
  • Q A Duke/Sandy/Latha/Dan
  • 20 minutes

14
Enterprise Data Warehouse
  • Create an implementation roadmap
  • Content scope January 1998 thru present
  • All products loaded over 5 years
  • Implement value after each iteration
  • Loss Cost, Retention, Loss Triangles
  • Establish Data Stewardship - 2004

15
Enterprise Data Warehouse
The data warehouse will support
16
Data Warehouse Value
17
Data Warehouse Statistics
1997 policies used to seed warehouse
700,000 Total policies Jan 1998 thru Jun 2007
Total units Jan 1998 thru Jun 2007 Average
Number of Coverages per policy 5 Average number
of policies in-force per month 800,000 Average
number of claims per month 8,000
18
Data Warehouse Benefits
  • Single version of the truth
  • Data integrated at the lowest level
  • High-end hardware platform
  • Codes translated to English terms
  • Resolve source system problems
  • Data quality review and correction
  • Integration of external information

19
Data Mart Themes
  • modernLINK quote
  • Exposure
  • Retention
  • Experience
  • Loss Cost
  • Claims
  • Underwriting

20
Technology Enablers.
  • IBM RS6000 AIX processors
  • EMC data storage
  • Oracle DBMS
  • COGNOS for reporting utilizing query, report,
    mapping and analytical tools
  • Websphere Portal
  • LDAP for single sign-on

21
Showcase Agenda
  • Background/Business Case
  • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
  • 20 minutes Latha Subramanian
  • Data Model AIIM
  • 20 minutes Duke Ganote
  • Information Management AIIM
  • 20 minutes Dan Daly
  • Q A Duke/Sandy/Latha/Dan
  • 20 minutes

22
Data Model
  • Provides a common, integrated way for the
    corporation to view and to communicate about its
    business
  • Allows the business to drive the system
  • Creates standard definitions/documentation
  • Provides structure to new development projects

23
Enterprise Data Model
People Places Things
Insureds Operators Lienholders Claimants Geography Address Quotes/Policies Claims Coverages Accidents/Violations Homes/Vehicles UW rules Makes/Models
24
Jump Start Enterprise Data Model
Generic Model based on Insurance Industry
Practices
Acord Standards
Integrated View Common Data Definitions Across
business
Transform
AMIG Specific Requirements
Manufactured Home Site Built Motorcycle Motor
Home Travel Trailer Classic Auto FID Commercial
25
Data Model Benefits
  • Foundation for
  • modernLINK rate quote applications
  • Data warehouse/data mart/analytic design
  • mLP3 Operational Data Store (ODS) design
  • New projects simply add to the model
  • Insurance score
  • Claims liability
  • Development of data standards and a common
    language

26
Inmon, Initially
  • Data warehouse built using Inmon approach

Source (non- relational)
Data Warehouse (normalized)
DataMart (star)
End of month
End of month
Corporate Information Factory Components, W. H.
Inmon http//www.inmoncif.com/view/26
27
Conformance
Retention Mart (star)
  • Conformed Dimensions

Conformed Dimensions
Pricing DataMart (star)
Data Warehouse (normalized)
Loss Cost DataMart (star)
The 38 Subsystems of ETL, Ralph Kimball
http//www.intelligententerprise.com/showArticle.j
html?articleID54200319
28
Challenges
  • Multiple sources
  • Latency
  • Stewardship

29
Multiple Sources
  • OPPORTUNITIES
  • Daily claims/catastrophe feeds
  • 3rd party Claim data (claims cost standards)
  • Huon (an new Insurance ERP)
  • Munich RE (pending merger with reinsurer)

30
Multiple Sources
  • RESPONSES
  • Pull data generally from relational DBMS, e.g.
    DB2, Informix, SQL Server
  • Push data generally from non-relational DBMS
    DMS II (Unisys)

31
Latency Changes
  • OPPORTUNITY Daily information
  • Catastrophe reporting e.g. Hurricane Katrina
    2005, Fab Four of 2004
  • Financial Institutions requesting daily account
    information on insureds.

32
Latency Changes
  • RESPONSE Kimball architecture

Daily Conformed Dimensions
daily
daily
Source (OLTP)
CATastrophe DataMart (star)
daily
daily
Staging Area
Kimball Design Tip 34 You Dont Need an EDW,
Ralph Kimball http//www.kimballgroup.com/html/des
igntipsPDF/DesignTips2002/KimballDT34YouDontNeed.p
df
33
Latency Changes
  • Kimball Architecture
  • The staging area is exactly like the kitchen in
    a restaurant. The kitchen is a busy, even
    dangerous, place filled with sharp knives and hot
    liquids. The cooks are busy, focused on the task
    of preparing the food. It just isn't appropriate
    to allow diners into a professional kitchen or
    allow the cooks to be distracted with the very
    separate issues of the fine dining experience.

Two Powerful Ideas foundations for modern data
warehousing, Ralph Kimball Sept 17, 2002
http//www.intelligententerprise.com/020917/515war
ehouse1_1.jhtml
34
Data Stewardship
  • OPPORTUNITY
  • Daily instead of monthly reference data needed.
    However, for example, no daily system of record
    automated for
  • Claims Adjusters
  • Catastrophe name/details

35
Data Stewardship
  • RESPONSE
  • Data stewards maintain master data / system of
    record.
  • Over night ETL uses master data for building
    dimension.
  • Referential integrity always enforced with fact
    table, so data stewards cannot delete required
    for integrity.

36
Showcase Agenda
  • Background/Business Case
  • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
  • 20 minutes Latha Subramanian
  • Data Model AIIM
  • 20 minutes Duke Ganote
  • Information Management AIIM
  • 20 minutes Dan Daly
  • Q A Duke/Sandy/Latha/Dan
  • 20 minutes

37
Information Management Benefits
  • Single BI Architecture
  • Provides a consistent view of our Corporate Data
  • Allows for common product training support
  • Volume license pricing provides flexibility and
    cost savings
  • Converting Data Collectors to Information
    Consumers
  • Corporate Portal Integration
  • Delivering specific information to specific
    business users
  • Providing pre-emptive alerts to users based on
    specific (data) events

38
Single BI Architecture (Consistent View, Common
Training Support Volume Pricing)
  • Using Cognos 8.2 for our Enterprise Reporting
    Portal
  • Report Studio, Analysis Studio, Query Studio,
    Event Studio, Metric Studio
  • All Cognos Content Provided in Themes
  • modernLINK quote
  • Exposure
  • Retention
  • Experience
  • Loss Cost
  • Claims
  • Underwriting

39
Single BI Architecture (Consistent View, Common
Training Support Volume Pricing)
40
Converting Data Collectors to Information
Consumers
  • Corporate Portal Integration

41
Converting Data Collectors to Information
Consumers
  • Delivering specific content to specific users
  • Bursting Experience Exposure information
    directly to our Business Partners (Agents)

42
Converting Data Collectors to Information
Consumers
  • Providing pre-emptive alerts to users based on
    specific (data) events

43
So Whats Next?
  • Spend more time executing strategy less time
    gathering data
  • Manage to Corporate Scorecards / Performance
    Metrics

44
Showcase Agenda
  • Background/Business Case
  • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
  • 20 minutes Latha Subramanian
  • Data Model AIIM
  • 20 minutes Duke Ganote
  • Information Management AIIM
  • 20 minutes Dan Daly
  • Q A Duke/Sandy/Latha/Dan
  • 20 minutes

45
Q A session
46
Wrap Up
  • Enterprise Data Warehouse now in its 7th year
  • Business units embrace the DW
  • Holistic view of information in one place
  • Next phase deliver similar functionality to our
    external business partners
  • Our case study has been placed in National
    Archives
  • The copy of the case study can be found on the
    following web page http//www.cwhonors.org/viewC
    aseStudy.asp?NominationID54

47
SWOC DAMA 2008 Showcase at American Modern
Insurance
  • February 21, 2008
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